Barclays warns of a financial storm as Federal Reserve's credibility crumbles
Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall "below zero".
"We're in a nasty environment," said Tim Bond, the bank's chief equity strategist. "There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth."
This is being described as a 'blunder' by the Fed, but a blunder is something that leads to an outcome you didn't intend. Therefore, forget the 'blunder' bit.
